Sign up Australia
Proactive Investors - Run By Investors For Investors

Nyota Minerals offloads its last mining assets

The former owner of the Tula Kapi gold asset in Ethiopia is now a cash shell that is set to move into the restaurant-focused online discounts sector
Transaction agreement
Funds from the dispoal will be used to provide additional working capital for the company

Nyota Minerals Limited (LON:NYO, ASX:NYO) is to sell its 70% interest in KEC Exploration to Christopher Reindler, its minority shareholder, who is a director of KEC.

KEC controls the various tenements in Italy that comprise the Ivrea nickel project.

Once this disposal has been completed, Nyota will be a pure cash shell. In November of last year it announced the potential acquisition of Bigdish Limited, which would count as what is known as a reverse takeover in the UK and a back-door listing in Australia.

The purchaser has agreed that Nyota will be under no obligation to pay for any further work on the tenements, save for potential contributions of €12,500 towards the tenement licence renewal fee and a further contribution of €7,500 towards the Galerno licence renewal fee.

Nyota will retain a 3% net smelter return (NSR) payable on future sales from the Ivrea nickel project. Additionally, the agreement provides for a buy-back of the NSR by the purchaser for A$200,000 in the first two years and A$400,000 in the third and fourth years following execution of the agreement.

View full NYO profile View Profile

Related Articles

1526401963_shutterstock_130308137.jpg
May 16 2018
It has hired engineer Hatch Ltd to look at a potential autoclave to produce gold bars
Tomingley gold open pit operation
March 27 2018
The Dubbo Project hosts zirconium, hafnium, niobium, tantalum, yttrium and rare earth elements.
Lydian International will be one of the few gold companies to go into production this year
January 10 2018
Lydian International is one of only a handful of companies taking gold projects into production this year

No investment advice

The information on this Site is of a general nature only. It does not take your specific needs or circumstances into consideration, so you should look at your own financial position, objectives and requirements and seek financial advice before making any financial decisions. You acknowledge and understand that neither the Company, its related bodies corporate, the information providers or their affiliates will advise you personally about the nature, potential value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter. You should read our FSG and any other relevant disclosure documents and if necessary seek persona advice prior to making any investment decision.

You understand and agree that no Content (as defined below) published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person.

You understand that in certain circumstances the Company, its related bodies corporate, the information providers or their affiliates may have received, or be entitled to receive, financial or other consideration in connection with promoting, and providing information about, certain entities on the Site and in communications otherwise provided to you.

You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate. From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

Before you act on any general advice we provide, please consider whether it is appropriate for your personal circumstances.

© Proactive Investors 2018

Proactive Investors Australia PTY LTD ACN:132787654 ABN:19132787654.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use